Kerala Governor Arif Mohammed Khan came down heavily on the State government as he indirectly pointed out the luxurious ‘Keraleeyam 2023’ programme the Kerala Government has been carrying out in connection with the state’s foundation day. He also mentioned that his only source of information regarding the ‘Keraleeyam 2023’ celebrations is the media.
Reports suggest that Rs 27 crore is being spent by the government of Kerala for the extravaganza. It is claimed to be an ambitious project to showcase the “state’s strength and potential”. The Finance Department has sanctioned a budget of Rs 27,12,04,575 for various sub-committees. Allocation of funds for various committees is reported to be as follows:-
- Seminar: Rs 2,00,000
- Cultural programmes: Rs 3,14,80,575
- Food Festial: Rs 85,00,000
- Reception & Accommodation: Rs 1,8158,400
- Trade fair : Rs 69,86,600
- Exhibition: Rs 9,39,00,000
- Light shows: Rs 2,97,50,00
- Film festival: Rs 60,00,000
- Sponsorship: Rs 1,00,000
- Security: Rs 31,17,000
- Volunteers: Rs 35,91,000
- Transport: Rs 1,98,00,000
- Media and campaigns : Rs 3,98,62,000
- Programmes: Rs 16,09,000
Interestingly, this luxurious programme is organised despite the acute financial crisis that the state is currently facing. The governor’s words should be viewed in light of the Kerala Government’s submission before the High Court (HC) that they are in deep fiscal crisis. And they have even stated before the High Court that they are not liable to pay back the investments made by the people in Kerala Transport Development Finance Corporation Limited (KTDFC).
KTDFC is a non-banking financial company fully owned by the Government of Kerala. It has a valid certificate of registration issued by the Reserve Bank of India under Section 45-IA of the RBI Act, 1934. The court, while considering the petitions moved by the investors, observed that GoK’s escapism is a matter of shame as they had given a guarantee to the investors. Lakshmi Trade Link is supposed to get Rs 30 lakh back.
In Sepember 2023 there were reports of KTDFC’s inability to pay back to Sri Ramakrishna Mission, Kolkota, a fixed deposit of Rs 130 crore even after maturity. The same reports came in suggesting that KTDFC owes Rs 490 crore to various depositors. And, RBI expressed its intention to revoke its (KTDFC) licence for non-banking operations. Apparently, Kerala Bank has invested major amounts of money in KTDFC. It is significant in the wake of the various scandals coming from the cooperative banking sector controlled by CPM.
Few months ago, there was news of a CAG report stating that financial mismanagement and a lack of financial discipline were the reasons for the fiscal crisis in the state.
The governor alleged that when there is no money to pay the pension of the retired government employees, the government spends on personal expenses and getting the swimming pools repaired. He was obviously referring to the serving and retired employees of Kerala Road Transport Corporation (KSRTC) who are agitating for salaries and pensions, respectively. And there was news of spending Rs 31,92,360, for the renovation of the Cliff House during the period between May 2016 and November 14, 2022.
It is to be remembered that the CPM-led Left Democratic Front (LDF) regime, with CPM leader Pinarayi Vijayan as the Chief Minister, took over on May 25, 2016. This information is reportedly based on the RIT reply one Pradesh Congress Secretary got from the Tourism Directorate. Expenses for truss works and plant room renovation were Rs 7,92,433. Reports suggest that GoK had not disclosed it despite repeated questions on the floor of the Assembly.
In the meantime, now the ‘talk of the state’ is the allocation of Rs 30,500 from the public exchequer for the purchase of spectacles for the Higher Education Minister, R Bindu; Bindu is the wife of A. Vijayaraghavan, CPM PB member and former CPM state secretary, as well as the former LDF convener in Kerala.
It looks like costly eyeglasses are an obsession for CPM leaders. During the first Pinarayi regime, P Sreeramakrishnan, the then Speaker of the Assembly, reportedly spent Rs 49,900 on his eyeglasses, and the then Health Minister KK Shailaja opted the eyeglasses worth Rs 28,000.
Now, who on earth can blame Governor Arif Mohammed Khan for his observation about extravagant government spending?
The governor had also opined that he would reply to the GoK’s petitions before the Supreme Court regarding not signing the bills passed by the Assembly. There will be expenses when vice chancellors are appointed. Then, it comes under the category of ‘Money Bill’. Money bills need the prior permission of the governor before being presented before the Assembly. Apparently, those bills were passed without the governor’s consent. So far, the Chief Minister has not clarified the matter; hence, he (Governor) has to wait before signing them.
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